Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

The world’s first global Crowdfunding and Marketplace Finance Index (CAMFI) shows that the industry exhibited a slight downturn in July, dropping from 94.11 in June to 90.32 in July.*

CAMFI, a joint venture between crowdfunding analytics company,TAB, Zhejiang University AIF as academic adviser, Hangzhou JZTData Science and Technology Co., Ltd and BBD UK, educates public bodies, financial analysts, academics, SMEs and corporates, on the strength of the online finance industry. It provides a single point of reference for all participants in alternative finance who want to quickly and easily check the health of the market.

The INDEX is constructed using three main attributes that measure the market’s Scale (market volume), Efficiency (financing rate), and Transparency (information disclosure). It comprises of three component indices: Debt Sub-Index, Equity Sub-Index, and Reward Sub-Index, which together reflect the development of the global industry.

Key points

The global crowdfunding and marketplace finance industry exhibited a slight downturn in July

Segment-wise, the Reward Sub-Index was the major cause of the July decline

Attribute-wise, the main declining driver was the market Scale measures

Industry Scale continued to shrink, most evidently in the Reward segment

Debt has stayed relatively stable, which is expected given it is such a large and diverse market

Equity has seen had a significant downturn in trading

Rewards has had the biggest downturn, with significantly fewer campaigns, backers and amounts of money raised for each campaign during the July period

Speaking of the slight downturn, Emily Mackay, CEO of TAB, comments: “With the holiday season beginning it is not unexpected that June and July would be lighter months than May (which saw a grading of 101.49), with raises slowing up across the globe and in the northern hemisphere particularly. This also fits with the wider global economic picture.”

Despite the slight downturn demonstrated in June and July, data from TAB shows that the industry is growing rapidly year on year:

In 2014, campaigners in the UK raised over $2 billion via crowdfunding platforms. In 2016, they raised over $3.96 billion.

China is demonstrating huge growth, with companies raising $134 million via crowdfunding platforms in 2014. In 2016, they raised $2billion.

France is also seeing significant growth, with companies raising $70 million in 2014, and $159 million in 2017 to date.

The Capital Goods industry raised $751 million in 2014. This year to date, it has raised $1.4 billion.

Mackay continues: “Despite the slight downturn, the long-term health of the alternative finance market is looking very strong. While the UK and US have traditionally been the biggest players in the space to date, we are seeing huge growth across regions including China, Japan, France and Italy. We expect the growth of the last three years to accelerate over the next three.”

* CAMFI and its sub-indices fluctuate at around 100; more than 100 shows that the industry is in a state of health and expansion, less than 100 shows that the industry is in a state of contraction. The greater the index measure for the month, the greater the degree of health expansion of the industry.